>>>"The company's net loss was $14.9 million for the September 1999 quarter, vs. $8.2 million for the June 1999 quarter. "
During NetZero's early months of operation pretty much the only thing it had going for it was the fact it offered free access on a national scale. However, the period where you highlight above also saw NetZero undergo a tremendous upgrade of its system. You see, in August, ZeroPort was introduced.
So what's the big deal about ZeroPort?
Well, there's a lot to it. Foremost ZeroPort makes NetZero just like AOL. The ZeroPort function offers links to business, sports, music, ecommerce, etc., much like AOL. And the advertising which follows the consumer, is demographically and geographically targeted to fit the interests of the consumer. Another neat thing is when the consumer goes to website and is considering the purchase of a product, the ZeroPort will aim an ad of a competitor which offers a competitive price. NetZero, during this time, also upgraded both its speed and reliability functions.
Fact is the street estimated NetZero would lose 19 cents a share, but NetZero came in with a loss of 13 cents. That's not bad for a first earnings report.
Now signing new subscribers at the rate of 9,000 daily, and this by the word of mouth vehicle of advertising, this number is sure to increase given NZRO has now embarked on a national electronic, print and outdoor national advertising campaign. It won't be long before NetZero is the number two ISP in the nation.
There is nothing wrong with NetZero's business model. It makes sense and fits the times we live in. You watch! |
